Palos Bank and Trust Co. Shut Down Over The Weekend; 110 Bank Failures So Far

Banks are beginning to fail at a slower rate, as for the second time in recent memory, just one bank has been shut down by the Federal Deposit Insurance Corp. (FDIC) this weekend,

Palos Bank and Trust Co., based in Palos Heights, Illinois was shut down over the weekend and its assets and deposits were assumed by First Midwest Bank. Palos had $493.4 million in assets, and $467.8 million in deposits. Read more: http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2010/08/15/BUFM1ETV1T.DTL#ixzz0wm3LAThO This is expected to cost the FDIC fund $72 million. This is the 110th bank to fail so far this year, well ahead of last year's pace of 77 banks so far. Last year, the total number of failures reached 140 and this year's pace could far outpace this, even though in recent weeks it appears the failures have been moderating.